Nestlé’s confectionery operations record performance upturn
Swiss-headquartered Nestlé has recorded growth across its global businesses, including within its confectionery operations, as the company posting overall six-month sales of CHF 41.7 billion, against $41.1 billion for the same period in 2020, reports Neill Barston.
Notably, the company’s sweets and snacks interests delivered CHF 3.2 billion in the opening half of this year, compared with $2.9 billion last year, amid major investment in health and wellbeing ranges and acquisitions including recently gaining control of the Bountiful Company.
Figures within its dairy and ice cream segments were more challenging, with slight dip in results, achieving CHF 5.2 billion this year, against CHF 5.3 billion for the first half of 2020.
Net profits for the group stood at CHF 5.9 billion for the first half of the year, up 1.1%, with organic sales growth put at 8.1%, with improved performance from retail operations as many areas around the world relaxed coronavirus pandemic restrictions.
As the company noted, its performance in Europe remained strong, with figures for Asia also showing an upturn in results.
Beyond 2021, the business said that its mid-term outlook for continued moderate margin improvement remains unchanged, with organic sales growth anticipated of between 5-6%, with underlying trading profit margins of around 17.5%.
Mark Schneider, Nestlé CEO, welcomed the improved picture. He said:”I would like to thank the Nestlé team for their continued commitment to meeting consumer needs and their relentless focus on execution. Organic growth was strong across most geographies and categories, with robust momentum in retail sales and a return to growth in out-of-home channels. Through fast-paced innovation, strong brand support, increased digitalisation and stringent portfolio management we have built the foundation for delivering consistent mid single-digit organic growth for years to come.
“Nestlé continues to invest for future profitable growth. We are creating a global leader in vitamins, minerals and supplements with the acquisition of The Bountiful Company’s core brands. The expansion of our partnership with Starbucks into ready-to-drink coffee will open new opportunities in a fast-growing segment. Our portfolio choices, strong execution and decisive actions on sustainability enable us to create value for all stakeholders.”